Listed Company's Financial Report Fraud And It's Regulation In China

This paper uses the listed company's financial report fraud as the headword, systematically discusses characters, jeopardizes, types and causations of financial report fraud from the angles of law, accounting and economic under the special actuality of China. And seek for the path of regulation of listed companies'financial report fraud. This paper mainly covers four parts:In the first part, author discussed the meaning and jeopardize of financial report fraud of listed companies. It is the main reason that author wrote this article. In this part, concepts of listed company, financial report, fraud, financial report fraud and its inscapes in law have been in-depth parsed. Author also summarized harms of financial report fraud in five aspects.In part two, author analyzed the status of financial fraud by demonstration. At beginning is the statistic of listed companies that have been punished between 2005 and 2006. Then main manners of financial report fraud were summarized and charts about it were protracted. Finally, by the sustainment of data, author come the characters of financial report fraud in China down to six facets.Part three is about the causations of financial report fraud. Bases on the actuality in the chapter above, according to the prescription of audit guidelines, article put causations of financial report fraud into three species. They are motivation, opportunity and rationalization. By resolve them particularly, author may adopt effective measures in allusion to causations.In the fourth part, the regulation of listed companies financial report fraud, according to inducements that concluded in preamble, author established a feasible system of restriction. It contains: the foundation of effectual corporate governance mechanism, the consummate of legal system, the foster of institution investors and the strengthen of outside audit.This paper was written by the means of both theoretic and practice, consider the special background of economic transformation in China, it is realistic and feasible. But due to the weakness of author's accounting knowledge, the part of data analyzing in this article still have a lot to enhance.